FNCB selling two Monroe branches to ESSA

First National Community Bank customers in Marshalls Creek and Stroudsburg will see a new letterhead on their statements soon — ESSA.

HOWARD FRANK

First National Community Bank customers in Marshalls Creek and Stroudsburg will see a new letterhead on their statements soon — ESSA.

FNCB agreed to sell its Marshalls Creek and Stroudsburg branch deposit and loan accounts to ESSA Bancorp. The deal is expected to become official by the end of the year.

ESSA is also purchasing FNCB's Marshalls Creek building at 5120 Milford Road, East Stroudsburg. ESSA will consolidate the accounts at its own branches in Marshalls Creek and Bushkill at its newly acquired FNCB building, across from Sellersville Road by the new CVS.

ESSA account holders in Marshalls Creek and Bushkill will be serviced from the newly acquired branch.

Customer deposits and loans held at FNCB in Stroudsburg will be serviced out of ESSA's Main Street, Stroudsburg, branch.

"We are purchasing a conveniently located, highly visible and attractive facility, and improving our efficiency by consolidating two of our nearby locations into this new facility," ESSA President and CEO Gary Olson said.

Both companies plan to work together to make this a smooth transition for branch customers, he added.

ESSA has 26 branches in Monroe County and the Lehigh Valley. After the addition of a new branch and the consolidation of two existing branches, ESSA will have 25 retail outlets.

The company anticipates the new branch will have combined deposits totaling more than $40 million.

The two ESSA branches to be shuttered are next to Alaska Pete's in Marshalls Creek and near the entrance to Lake of the Pines in Bushkill.

The new ESSA branch is on Route 209 next to Alaska Pete's.

Customers affected from both banks have been notified of the changes. The terms and rates of all FNCB-originated loans and certificates of deposit will remain unchanged under ESSA. Savings and checking accounts will be absorbed into the ESSA deposits structure.

First National has 17 branches in Lackawanna and Luzerne counties and two in Wayne County. The Marshalls Creek and Stroudsburg branches are its only ones in Monroe County.

The sale represents FNCB's divestiture from local retail banking efforts.

"Our decision to exit retail banking activities in Monroe County is strategically consistent with the steps we've taken to improve operating efficiency and profitability," FNCB President and CEO Steven R. Tokach said in a release on PR Newswire.

The bank will focus on investments, infrastructure, product enhancements and retail banking in its core service areas in Lackawanna, Luzerne and Wayne counties.

FNCB will still run its Marshalls Creek and Stroudsburg operations until the sale is closed.

The sale is subject to regulatory approval by both the Pennsylvania Department of Banking and the Federal Deposit Insurance Corp.

It is unclear what FNCB will do with its Stroudsburg building, at 301 McConnell St., after the sale is closed. A representative from the company could not be reached.